9911796707
TMI Blog1994 (3) TMI 232X X X X Extracts X X X X X X X X Extracts X X X X ..... rder-in-Original No. VGN(30) 396/Denovo-Adj/T-s/88/288, dated 6-1-1989 of Asstt. Collector of Central Excise, Nasik-I Division. 2. After hearing both the sides, we find the following position, which is not disputed by both the sides. The appellants holding a Central Excise Licence for the manufacture of parts of Transmission Towers, Welding Masts, Poles etc. They are also a Small Scale Unit availing the exemption under Notification No. 175/86. They received input materials from M/s. Jyoti Structures under delivery challans, on the basis of which they took deemed Modvat Credit in respect of the steel materials, as available to them in terms of the Boards Order dated 7-4-1986. The appellants obviously were doing job work on behalf of M/s. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the process, by avoiding procedure prescribed under Rule 57F(2) in this ingenious manner. Jyoti Structures, who are receiving various materials ought to have sent these materials under Rule 57F(2) by taking credit, instead they resorted to sending them directly to the appellants and the appellants are being utilised because of their status as Small Scale Unit, for payment of duty at the lower concessional rate so that Jyoti Structures could take higher notional credit and get the benefit both ways. The thrust of the observation no doubt appeals to us, but here the case before us is the eligibility for deemed Modvat Credit for the appellant who is admittedly a licenced Small Scale Unit eligible to avail of exemption under Notification No. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erials received otherwise than by way of purchase and this is available even in respect of the materials received on job work basis by a manufacturer holding Central Excise licence as per the Board s subsequent order. Moreover, there is no stipulation in Notification 175/86 that a Small Scale Unit paying duty at the concessional rate cannot receive inputs under Modvat scheme, if they are received on transfer basis for job work on behalf of another manufacturer. 3. Before parting, there appears to be a loophole, in the scheme of higher notional credit and M/s. Jyoti Structures appear to have taken advantage of the same. On that ground, the appellant who is an independent manufacturer cannot be denied Modvat Credit without any legal basis, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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